Amtrak's business operations need to be strengthened, GAO says

WASHINGTON (AP) -- Amtrak needs to improve the way it monitors performance and oversees its finances to reach solid financial ground, congressional investigators said Thursday.

"Amtrak's management may be able to correct a number of these issues on its own, but the company is likely to need outside help in developing a comprehensive approach to address internal control weaknesses and improve the financial information for management and external stakeholders," said the Government Accountability Office, the auditing arm of Congress.

"While Amtrak has recently reduced costs, revenues are declining faster than costs, leading to operating losses exceeding $1 billion annually," the report said. "These losses are projected to grow by 40 percent within four years."

The GAO recommends that the transportation secretary direct the Federal Railroad administrator to: require Amtrak to submit a plan laying out specifically how it will improve its financial operations; provide Amtrak with direction on how to do so, and; monitor the railroad's performance and report to Congress on Amtrak's progress.